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Internal strife and financial troubles at the Columbus Urban League have left the civil-rights
organization trying to regroup after it lost about $8 million in federal and local grants in the
past four months.

Just last week, the Urban League was informed that it will lose a $7.5 million federal Head
Start grant it has held since 2007. In March, the city decided to take away half of its $460,000
anti-gang-violence grant and give it to another nonprofit group.

The losses have eliminated 72 percent of the Urban League’s $11 million budget and come after
the nonprofit organization posted an operating deficit of about $18,000 on its most-recent
financial-disclosure filing with the Internal Revenue Service.

Among the missteps that have put the Urban League’s funding in danger:

• The group had received Head Start funds since 2007, but a government audit found that it
misused $13,000 in grant money to pay for a trip to the National Urban League convention. In 2011,
time sheets for program workers were reported incorrectly.

• Since 2008, the organization has spent $38 million to administer grant-funded programs while
receiving $34.8 million in grant money, according to the group’s financial-disclosure forms filed
with the IRS.

• In 2010, officials spent $40,000 more to conduct fundraising events than the money raised.
About $381,000 was raised by the organization from 2008 to 2011, according to tax filings.

• City officials said they decided to split the anti-gang-violence grant because they got more
bidders in the program’s second year. But they and Urban League officials concede that
unprofessional conduct by counselors hired by the Urban League resulted in the firing of five of
the eight employees.

There also were disagreements between city administrators and the Urban League’s administrator
of the gang-violence program. As a result, Stephanie Hightower, the Urban League president and CEO,
transferred the administrator to another department.

“Overall, the mayor was happy with the way the program was conducted in its first year,” said
Dan Williamson, spokesman for Mayor Michael B. Coleman. “This was a new program, and like anything
new, there are going to be things to improve upon.”

Hightower, who took over as CEO in August 2011, said nearly all the financial problems came on
the watch of her predecessor, and she is trying to raise more money and improve the
organization.

“This year alone, we’ve raised more than $1 million, and last year, we raised significant funds,
so we are moving forward,” Hightower said. “I had to come in and clean house here. I want to be
transparent with the public about this because we believe in the work we’re doing.”

The nonprofit group also secured a $500,000 loan in March, using its headquarters at 788 Mount
Vernon Ave. as collateral, according to records at the Franklin County recorder’s office.

Eddie Harrell Jr., who stepped down as CEO in 2011 to take a job as general manager of Radio One
in Columbus, said the recession played a large role in the organization’s financial problems.

“I would choose not to debate my tenure through the press, but I feel good that we made some
tremendous successes while I was there, including getting the Head Start grant,” he said.

Hightower said the Urban League will continue some Head Start programs through the YMCA of
Central Ohio, which was awarded the grant that is meant to help prepare children from low-income
families for school. The Urban League served about 1,025 children in the program.

The organization will continue to deliver some services through about $3.5 million in other
grants, such as job development and housing for low-income families.

In addition to the financial troubles, Hightower has had to deal with disgruntled employees and
former workers who are upset with her management style and have attacked her character in front of
neighborhood leaders and elected officials. One of the employees she fired recently was having a
sexual relationship with a woman doing contract work through a local halfway house.

Hightower said she could not comment on personnel matters.

“But I will say, some of this stuff I will not tolerate from my employees,” she said. “I am
trying to help change things, and change is never easy, so you are going to have people talking and
saying things about me. But we have a mission to serve this community, and we are going to do
it."